How to Start a Daycare in Indiana

Quick answer: How do I start a daycare in Indiana?

Indiana daycare licensing at a glance

Sources: IC 12-17.2-4-12, IC 12-17.2-5-12, IC 12-7-2-33.7, IC 12-7-2-33.8, IC 12-17.2-5-6.3, and 470 IAC 3.

Do I need a childcare license in Indiana?

Yes, in most cases. The Office of Early Childhood and Out-of-School Learning (OECOSL), part of the Family and Social Services Administration (FSSA), regulates three kinds of programs: child care centers, child care homes, and child care ministries. Source: FSSA laws and rules page.

• Child care center. A nonresidential building where at least one child receives care for regular compensation for more than four hours but less than 24 hours a day. Source: IC 12-7-2-28.4.
• Child care home. A residential structure where at least eight children, or at least four children under 12 months old, receive care from a provider for regular compensation, while unattended by a parent, for more than six hours but less than 24 hours a day for ten consecutive days, not counting weekends and holidays. Relatives of the provider, children in the provider's custody or guardianship, and children 14 or older who do not need care do not count. This definition has applied since July 1, 2024; earlier guidance used six children and four hours. Source: IC 12-7-2-28.6 and 2024 conference committee report on HB 1102. A home is either Class I or Class II.
• Class I home. Any mix of full-time and part-time children, up to 12 at one time, plus three children who are enrolled in at least full-day kindergarten. Source: IC 12-7-2-33.7.
• Class II home. More than 12 but no more than 16 children at one time. Source: IC 12-7-2-33.8.
• Child care ministry. Child care run by a church or religious ministry that is exempt from federal income tax. Ministries register with the state instead of getting a license. Source: IC 12-7-2-28.8 and FSSA become a provider page.

What are the Indiana childcare license types?

The division issues three kinds of licenses. A regular license is issued when you meet every requirement, and it lasts three years for a center and two years for a home. A provisional license is for a program that cannot yet show compliance because it is not in full operation. It lasts up to one year and is reviewed every three months. A probationary license is for a licensee who is temporarily unable to follow a rule without creating an immediate threat to children. It is valid for up to six months, and the division may extend it once for another six months. Source: IC 12-17.2-4-12, IC 12-17.2-4-13, IC 12-17.2-4-14, and IC 12-17.2-5-12.

Which programs are exempt from licensing?

Indiana law exempts the following programs, among others. The FSSA's become a provider page points to the Indiana Code as the source for exemptions. Source: IC 12-17.2-2-8, IC 12-17.2-1-1, and FSSA become a provider page.

• Programs for children in kindergarten through grade 12 operated by the department of education or a public or private school.
• Nonresidential programs that provide child care for less than four hours a day.
• Recreation programs that operate no more than 90 days in a calendar year.
• Programs whose main purpose is social, recreational, or religious activities for school-age children, such as scouting, sports, or the arts.
• Programs for migrant children that serve migrant worker families and run less than 120 consecutive days in a calendar year, and homes that operate to serve migrant children.
• School-operated child care and school-age ("latch key") programs that meet health, safety, and fire standards set by the division and the state fire marshal.
• Child care ministries registered under IC 12-17.2-6.
• Care in your own home if you receive no regular compensation, care only for relatives, care for fewer than eight children (not counting relatives, children in your custody, or teens 14 and older who do not need care), or provide care less than six hours a day and no more than 30 hours a week.

Some exempt providers can still apply through I-LEAD as a legally licensed exempt provider, which means meeting the FSSA's eligibility standards and passing an onsite inspection. Source: FSSA become a provider page and FSSA legally licensed exempt provider packet. Not sure where to begin? Use our checklist for starting a daycare business.

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What are the childcare licensing requirements in Indiana?

Child care center licensing requirements

The rules for centers are in 470 IAC 3-4.7 and IC 12-17.2-4. Before you can be licensed, your center must do the following. Source: 470 IAC 3-4.7-2 and IC 12-17.2-4-2.

• Get plan releases from the Department of Fire and Building Services and the Indiana Department of Health before construction and licensing, if the building is new construction.
• Submit a complete application with all required documents.
• Submit a written nutrition and food service plan and two weeks of menus for approval.
• Submit a written health program form for approval.
• Pass an on-site inspection before licensure and before each renewal.
• Stay within the capacity approved by the division, and serve only the ages approved by the division and the Department of Fire and Building Services.
• Meet local zoning requirements, and show a business permit or license from your county, city, or town, or a statement that none is required. Source: IC 12-17.2-4-3.
• Carry liability insurance, plus insurance on any center-owned or leased vehicle that transports children. Source: 470 IAC 3-4.7-20.

Who must be qualified in an Indiana child care center?

• Director. At least 21 years old, with one of the following: a bachelor's degree in early childhood education or elementary education with a kindergarten endorsement and grades of C or better; any bachelor's degree that includes 15 college credit hours in child development content (or a CDA); or a two-year associate's degree in early childhood education with a grade of C or better and at least three years of experience in an early childhood program. The director works on site at least 30 hours a week or half of the center's weekly hours, whichever is less. Source: 470 IAC 3-4.7-21 and 3-4.7-22.
• Lead caregiver. A current CDA credential, a bachelor's degree in early childhood or elementary education with a kindergarten endorsement, or a bachelor's degree that includes 15 credit hours in child development content. The rule also lists a two-year associate's degree in early childhood education with a grade of C or better, although the rule text places that option under the bachelor's degree item. A lead caregiver without one of these needs eight more in-service hours a year, enrolls in a qualifying program within a year, and completes at least six credit hours a year. Source: 470 IAC 3-4.7-25.
• Caregiver. At least 18 years old, with a high school diploma or equivalency test, and the reading and writing skills to handle emergency information, prescription labels, menus, accident reports, and children's records. Source: 470 IAC 3-4.7-24.
• Support staff and substitutes. Support staff are exempt from educational requirements but complete orientation and ongoing training, and meet caregiver qualifications if counted in ratio. Substitutes meet the minimum caregiver qualifications. Source: 470 IAC 3-4.7-27 and 3-4.7-28.

What training do center staff need?

Caregivers and anyone counted in ratio need basic first aid training, renewed at least every three years. At least one caregiver with current pediatric CPR must be present in the licensed area at all times and on field trips. All infant and toddler caregivers need current first aid and infant or pediatric CPR. Source: 470 IAC 3-4.7-33 and 3-4.7-34. State law requires caregivers to complete pediatric CPR within 90 days of starting and to keep pediatric first aid current. Source: IC 12-17.2-4-2.

The director and everyone counted in ratio also complete at least 12 clock hours of in-service training each year. New staff complete documented child abuse and neglect training during their first two weeks. Source: 470 IAC 3-4.7-35 and 3-4.7-13.

What background checks and drug testing apply to centers?

The applicant, and any employee or volunteer who may be on the premises during operating hours, must submit fingerprints for a national FBI criminal history check before starting and every three years after. The FSSA also requires a signed consent form (State Form 53323) for every staff member, annual child protection index and sex offender registry checks, and new fingerprints if someone has been away from Indiana child care for more than 180 consecutive days. Centers also keep drug test results for every caregiver and volunteer, obtained before the person starts, and maintain a written policy that bans tobacco, alcohol, and illegal substances while children are in care. Source: IC 12-17.2-4-3, IC 12-17.2-4-3.5, and FSSA background check requirements.

What health and facility rules apply to centers?

• Staff health. New staff, volunteers, and substitutes with direct contact provide a physical exam verification within 30 days of employment and a Mantoux TB skin test that is repeated every year. Source: 470 IAC 3-4.7-85.
• Children's records. Each child's file includes a signed application and a physical exam and immunization record within 30 days of enrollment. Keep staff and children's records at least one year after service ends. Source: 470 IAC 3-4.7-36, 3-4.7-38, and 3-4.7-46.
• Space. Each room needs at least 35 square feet of usable indoor space per child, and the outdoor play area needs at least 75 square feet for each child outside at one time. Newly licensed infant rooms need 50 square feet per child. Source: 470 IAC 3-4.7-110, 3-4.7-68, and 3-4.7-142.
• Bathrooms. Provide at least one sink and one flush toilet for every 15 children age two and older. Infant and toddler restrooms count only for their own rooms. Source: 470 IAC 3-4.7-113.
• Infants and toddlers. A center must be specifically licensed before it cares for any infant or toddler, and its nutrition plan and health program go back to the division for review when you add those ages. Source: 470 IAC 3-4.7-120, 3-4.7-75, and 3-4.7-84.
• Drills and safety. Hold monthly fire drills, and monthly tornado drills where tornadoes occur. Kitchens must follow 410 IAC 7-24, the state retail food rule. Source: 470 IAC 3-4.7-103 and 3-4.7-116.
• Special needs and night care. Directors must be certified in special needs care within six months of starting. Care between 7 p.m. and 6 a.m. requires specific night care approval and at least two caregivers on duty. Source: 470 IAC 3-4.7-147, 3-4.7-150, and 3-4.7-151.

Indiana center ratios and group sizes

The ratio depends on the age of the youngest child in the group. Centers must have at least two adults present during hours of operation. Source: 470 IAC 3-4.7-47 and 3-4.7-48.

The state may allow exceptions to maximum group size under IC 12-17.2-4-14.5. See the FSSA center ratio chart and our guide to childcare ratios.

Child care home licensing requirements

The rules for homes are in 470 IAC 3-1.1, 3-1.2, and 3-1.3. Where the rule and the Indiana Code differ, this guide follows the Indiana Code, and the FSSA's program matrix summarizes what each program type needs.

Who qualifies for a home license?

• Class I home. The licensee has a high school diploma or equivalent, has completed, is enrolled in, or agrees to complete within three years a CDA program or a similar program approved by the division, and completes the division's safe sleep training. Source: IC 12-17.2-5-6.3.
• Three extra school-age children. A Class I home may add three children enrolled in at least full-day kindergarten if it provides at least 35 square feet per child, keeps the required ratios, and has an illuminated exit sign over each required exit or emergency lighting. A home may have no more than 15 children under 11 present at one time, counting the caregiver's own children. Source: IC 12-17.2-5-6.3 and 470 IAC 3-1.1-24.
• Class II home. Child care services must be on the first story unless the building code allows an exception, with a hard-wired interconnected smoke detection system, a fire extinguisher in each room used for care, exits that meet the E-3 occupancy standard, at least 35 square feet for each child, fire drills, and safe sleep training. Before you apply, you must hold a Class I license or have at least one year of experience as a caregiver in a child care home or center. Source: IC 12-17.2-5-6.5.
• Residence. A home must be a residential structure. If you do not live there, a design professional must document that it qualifies. Source: 470 IAC 3-1.1-16.

Who can work in a child care home?

• Caregiver. At least 18 years old and responsible for direct care. The licensee can be the caregiver for only one home at a time, so a second home needs its own caregiver. Source: 470 IAC 3-1.1-4, 3-1.1-12, and 3-1.1-33.
• Assistant caregiver. At least 18 years old and supervised by the caregiver. If an assistant under 21 is left in charge, parents must be notified in writing. Source: 470 IAC 3-1.1-2 and 3-1.1-33.
• Student assistants and volunteers. Student assistants are 14 through 17 and work under direct supervision. Neither they nor volunteers can be left in charge. Source: 470 IAC 3-1.1-20 and 3-1.1-33.

What must a home keep on file?

• An annual tuberculosis (TB) test or chest x-ray for direct providers, plus an initial physical showing they are free of communicable disease.
• Fingerprint-based national criminal history checks for you, your spouse, employees and volunteers who may be on the premises, and household members who are 18 or older (or who were previously waived from juvenile to adult court), renewed every three years. The FSSA also requires a consent form for each person and annual child protection index and sex offender registry checks. You must report any police investigations, arrests, or convictions to the division. Source: IC 12-17.2-5-3 and FSSA background check requirements.
• Current first aid certification, annual CPR certification, and training in universal precautions.
• An enrollment form and a signed emergency medical release for each child, and a health statement from a physician or nurse practitioner within 30 days of admission.
• Written parent permission for activities away from home, and a signed copy of your discipline policy.
• A written evacuation plan, quarterly fire drills, a water quality test if you use a non-municipal water source, and notification of your local fire department.

Source: 470 IAC 3-1.1-28.5, 3-1.1-32, 3-1.1-34, 3-1.1-37, 3-1.1-46, and 3-1.1-47.

What training do home providers need?

Providers complete fire prevention training within one week, and training on the home inspection checklist, confidentiality, child abuse reporting, and universal precautions within 30 days. A first aid course is required every three years, and at least one provider with current pediatric CPR must be on the premises at all times. Source: 470 IAC 3-1.1-33.5.

Indiana home ratios

Only direct child care providers count toward ratio, and the ratio includes all unrelated children present. The FSSA's home ratio chart shows how many caregivers each mix of ages needs. Source: 470 IAC 3-1.1-36.5.

How do I apply for a childcare license in Indiana?

The FSSA lists the steps below for both centers and homes. Start with the Emerging Provider Referral Form to be connected with a specialist. Source: FSSA become a provider page.

• Complete Orientation 1. This training covers the start-up process for child care providers and is in Indiana Learning Paths on I-LEAD. You need to create an account. Source: FSSA become a provider page.
• Complete Orientation 2. There is a separate version for centers and for homes, covering preparation for licensure. Source: FSSA become a provider page.
• Submit your online application on I-LEAD. Centers use the center license application (State Form 23138). Include your local business permit or license (or a statement that none is required), a current email address, and a statement that you have not been convicted of or charged with a felony or a misdemeanor related to child health or safety. Source: IC 12-17.2-4-3 and IC 12-17.2-5-3. Find other forms on the FSSA forms page.
• Complete health and background requirements. Home applicants submit a medical statement with a Mantoux TB test or chest x-ray within 30 days of applying, and a water quality test if needed. The applicant and spouse submit fingerprints for a national FBI criminal history check, and employees, volunteers, and household members who are 18 or older do too. The FSSA background check page lists the four required parts of a check: federal fingerprints, Indiana fingerprints, the child protection index, and the sex offender registry. Schedule fingerprints through the FSSA's authorized vendor and submit State Form 53323 on I-LEAD. Source: IC 12-17.2-5-3, FSSA background check requirements, and 470 IAC 3-1.1-28.
• Pass the onsite inspection. A licensing consultant from OECOSL inspects your center or home. Find yours on the FSSA licensing consultants page. Source: FSSA become a provider page.
• Receive your license. The division recommends approval or denial based on the inspection and documents, and issues a regular, provisional, or probationary license as appropriate. For homes, the division approves or denies within 60 days of the county office receiving the application. Source: 470 IAC 3-1.1-28.

Child care ministries have an extra step: submit the completed packet to the Department of Homeland Security, Fire and Building Safety Division. Source: FSSA become a provider page.

Once licensed, you are ready to write your business plan and pick a memorable name for your daycare.

Getting your childcare license is just the beginning. Launching your program takes planning, tools, and reliable support. That’s why brightwheel offers a dedicated New Program Experience designed to guide you every step of the way. With our all-in-one platform, you can simplify enrollment, set up billing plans, and stay on track for a smooth, successful opening.

How much does it cost to get a daycare license in Indiana?

Indiana Code sets no application fee for a center or home license, and the center application (State Form 23138) lists none. Child care ministries pay a $50 registration processing fee to the division and a separate $50 fee to the state fire marshal. Other costs depend on your program, such as fingerprinting, TB tests, drug tests, insurance, and any building work. Source: IC 12-17.2-6-12, IC 12-17.2-6-13, and State Form 23138.

How long does licensing take?

The FSSA does not publish a timeline for centers. For homes, the division approves or denies an application within 60 days of the county office receiving it, and returns incomplete applications without acting on them. Source: 470 IAC 3-1.1-28 and 3-1.1-31. For a new center, build in time for plan releases and the division's review of your nutrition plan and health program.

See brightwheel's Indiana childcare licensing page, and compare other states in our childcare licensing requirements by state.

How do I stay compliant with my Indiana daycare license?

• Keep your license valid. A center license lasts three years and a home license lasts two. Licenses are not transferable and apply only to the licensee and address on the license. Display your license publicly. Source: IC 12-17.2-4-12 and IC 12-17.2-5-12.
• Renew on time. Centers file an application at least 60 days before the license expires. Homes submit a new application, a TB test or chest x-ray, a statement about convictions, and water testing, and the county office inspects again. If you submit a timely renewal, your current license stays in effect until the division decides. Source: 470 IAC 3-4.7-4 and 3-1.1-29 and IC 12-17.2-4-12.
• Apply for a new license before major changes. A center needs a new application before changing its address, name, ownership, capacity, or the ages it serves. Source: 470 IAC 3-4.7-3 and 3-4.7-4.
• Allow inspections. The division can monitor, visit, or inspect a center at any time and must be given immediate access to the premises, personnel, children, and records. Homes receive an annual inspection. Source: 470 IAC 3-4.7-9 and 3-1.1-28.5.
• Report serious events. Centers report serious injuries, deaths, arrests of staff, alleged abuse by staff, fires, and unsatisfactory water samples to the division and the affected parent immediately, and confirm in writing within five days. Source: 470 IAC 3-4.7-11 and 3-4.7-12.
• Keep training and checks current. Renew first aid every three years, CPR, annual in-service hours for centers, and national background checks every three years. Source: 470 IAC 3-4.7-33, 3-4.7-34, and 3-4.7-35 and IC 12-17.2-4-3.

Our checklist for starting a daycare business can help you stay organized.

What financial resources are available for Indiana childcare providers?

Yes. Grants are financial awards from government agencies or private foundations that do not need to be repaid. You can use them for facility updates, equipment, or staff training. Review the current grants for childcare providers in Indiana to find options that fit your program.

When you are ready to compare software, brightwheel's new program support and childcare management software can help you open with enrollment and billing set up.

Frequently asked questions

Do I need a license to run a daycare from my home in Indiana?

Yes, if you care for at least eight children, or at least four children under 12 months old, for more than six hours a day for regular pay. The count does not include your relatives or children in your custody, and the care must run for ten consecutive days, not counting weekends and holidays. Care without regular compensation, or for fewer children than that, is exempt from licensing.

How much does it cost to get a daycare license in Indiana?

Indiana Code sets no application fee for a center or home license, and the center application lists none. Child care ministries pay $50 to the division and $50 to the state fire marshal. You will also pay for items like fingerprinting, TB tests, and insurance.

How long is an Indiana childcare license valid?

A child care center license is valid for three years, and a child care home license is valid for two years. A provisional license lasts up to one year and is reviewed every three months. A probationary license lasts up to six months and can be extended once for another six months.

How many children can I care for in a home daycare in Indiana?

A Class I child care home can care for up to 12 children at one time, plus three children enrolled in at least full-day kindergarten. A Class II home can care for more than 12 and up to 16 children at one time.

What training do I need to open a daycare in Indiana?

You complete Orientation 1 and Orientation 2 on I-LEAD before applying. Caregivers also need current first aid and pediatric CPR, and center staff complete at least 12 hours of in-service training each year.

What are the staff-to-child ratios for daycare centers in Indiana?

Ratios depend on the youngest child in the group. Examples: five infants per caregiver (group of 12), eight children ages 24 to 29 months (group of 16), eleven 3-year-olds (group of 25), and 20 children ages six and older (group of 40).

How do I renew my Indiana daycare license?

A center files a new application at least 60 days before its license expires. A home submits a new application, a TB test or chest x-ray, and water testing, and the county office inspects again. A timely renewal keeps your current license in effect until the division decides.

Final thoughts

Securing a childcare license is a critical first step in launching a program in Indiana. Designed with new childcare programs in mind, brightwheel's software streamlines operations, improves communication, and supports your program's growth from day one, and you can begin setting it up before you open.